Nursing is a noble profession, but it is not without risks. Nurses are at the forefront of patient care, and their decisions and actions can directly impact the lives of their patients. Inevitably, mistakes can happen, and a single medical malpractice lawsuit can ruin the career and reputation of a nurse. This is where professional liability insurance comes in. In this article, we will explain what professional liability insurance is, why nurses need it, and how to choose the best policy for your needs.
What is Professional Liability Insurance?
Professional liability insurance, also known as malpractice insurance or errors and omissions insurance, is a type of insurance that protects professionals from legal claims that arise from their professional services. In the case of nurses, professional liability insurance provides financial protection in the event of a malpractice lawsuit or other legal claims related to their duties as a nurse.
A professional liability insurance policy typically covers the cost of legal defense, settlements, and judgments. It can also cover the cost of damages to the reputation of the nurse or their employer. However, it is important to note that professional liability insurance policies have limits and exclusions, and nurses should carefully review their policy before selecting one.
What Does Professional Liability Insurance Cover?
Professional liability insurance for nurses typically covers the following:
Coverage |
Description |
|---|---|
Legal Defense |
Covers the cost of hiring a lawyer to defend against legal claims. |
Settlements and Judgments |
Covers the cost of settlements or judgments awarded against the nurse. |
Reputation Damage |
Covers the cost of damage to the nurse’s or their employer’s reputation. |
License Protection |
Covers the cost of defending against disciplinary action or license revocation by a licensing board. |
Privacy Breaches |
Covers the cost of lawsuits resulting from a breach of patient confidentiality or privacy. |
What Does Professional Liability Insurance Not Cover?
Professional liability insurance for nurses typically does not cover:
Exclusions |
Description |
|---|---|
Criminal Acts |
Covers only civil liability, not criminal liability. |
Intentional Misconduct |
Covers only accidental or unintentional misconduct, not intentional misconduct. |
Employment Disputes |
Covers only professional services, not employment disputes. |
Non-Professional Activities |
Covers only professional activities, not non-professional activities. |
Prior Acts |
Covers only acts that occur after the policy is purchased, not prior acts. |
Why Do Nurses Need Professional Liability Insurance?
Nurses are at a high risk of being sued for malpractice. According to a study by the Nurses Service Organization, over 50% of nurses have been named as defendants in malpractice lawsuits, and 35% of these cases resulted in payment to the plaintiff. The cost of a malpractice lawsuit can be devastating for a nurse, both financially and emotionally. Professional liability insurance provides nurses with peace of mind and financial protection in case of a lawsuit.
Professional liability insurance also protects the reputation of the nurse and their employer. A malpractice lawsuit can damage the reputation of a nurse or their employer, even if the lawsuit is unfounded. Professional liability insurance can cover the cost of reputation damage and help restore the nurse’s or their employer’s reputation.
How to Choose the Best Professional Liability Insurance Policy?
Choosing the best professional liability insurance policy can be a daunting task, but it is essential for protecting your career and financial wellbeing. Here are some factors to consider when choosing a policy:
Policy Limits and Deductibles
The policy limit is the maximum amount that the insurance company will pay for a claim. The deductible is the amount that the nurse must pay out of pocket before the insurance policy starts paying. It is important to choose a policy with a sufficient limit and deductible that fits your needs and budget.
Coverage Options
Some professional liability insurance policies offer additional coverage options, such as cyber liability or employment practices liability. Consider your specific needs and choose a policy that offers the coverage options that are relevant to your practice.
Insurance Company Reputation
Choose an insurance company with a good reputation for customer service and claims handling. Look for customer reviews and ratings to gauge the company’s reputation.
Policy Exclusions and Conditions
Read the policy carefully to understand the exclusions and conditions. Make sure you understand what is covered and what is not covered by the policy.
Premiums
Premiums vary depending on the policy limit, deductible, coverage options, and other factors. Compare premiums from different insurance companies to find the best value for your money.
FAQ
What is the difference between professional liability insurance and general liability insurance?
Professional liability insurance covers legal claims that arise from professional services provided by the nurse, such as medical malpractice. General liability insurance covers claims that arise from non-professional activities, such as slips and falls on the employer’s property.
Do nurses need professional liability insurance if they work for a hospital?
Yes, nurses should have their own professional liability insurance even if they work for a hospital. Most hospitals have insurance policies that cover their employees, but these policies may have limits and exclusions that leave the nurse exposed to legal claims.
How much professional liability insurance do nurses need?
The amount of professional liability insurance that a nurse needs depends on the risk of their practice and the assets they need to protect. A nurse in a high-risk specialty, such as obstetrics or surgery, may need a higher policy limit than a nurse in a low-risk specialty, such as hospice care. Consult with an insurance agent to determine the appropriate policy limit for your needs.
Can professional liability insurance be purchased on a claims-made basis or an occurrence basis?
Yes, professional liability insurance can be purchased on either a claims-made basis or an occurrence basis. Claims-made policies cover claims that are made during the policy period, regardless of when the incident occurred. Occurrence policies cover claims that arise from incidents that occurred during the policy period, regardless of when the claim is made. Consult with an insurance agent to determine which type of policy is best for your needs.
Do nurses need professional liability insurance if they work part-time or per diem?
Yes, nurses should have professional liability insurance even if they work part-time or per diem. A malpractice lawsuit can occur even if the nurse works only a few hours a week, and the financial consequences can be just as devastating.
Can professional liability insurance cover claims from telehealth services?
Yes, professional liability insurance can cover claims from telehealth services. However, the coverage may be different depending on the policy. Consult with an insurance agent to determine if your policy covers claims from telehealth services.
Conclusion
Professional liability insurance is a crucial protection for nurses in today’s litigious society. Nurses should carefully evaluate their risks and choose a policy that provides adequate financial protection for their professional services. By understanding the coverage options, policy limits, and exclusions, nurses can make an informed decision and have peace of mind knowing that they are protected from legal claims that arise from their professional services.